capitaland investor day 2018 · 11/27/2018  · capitaland investor day 2018 presentation by mr....

CapitaLand Investor Day 2018Presentation By Mr. Lee Chee Koon

President & Group CEO

27 November 2018

This presentation may contain forward-looking statements that involve risks and uncertainties.

Actual future performance, outcomes and results may differ materially from those expressed in

forward-looking statements as a result of a number of risks, uncertainties and assumptions.

Representative examples of these factors include (without limitation) general industry and

economic conditions, interest rate trends, cost of capital and capital availability, availability of real

estate properties, competition from other companies and venues for the sale/distribution of goods

and services, shifts in customer demands, customers and partners, changes in operating expenses,

including employee wages, benefits and training, governmental and public policy changes and

the continued availability of financing in the amounts and the terms necessary to support future

business. You are cautioned not to place undue reliance on these forward looking statements,

which are based on current view of management on future events.

Disclaimer

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About CapitaLand

Asia’s Premier Diversified Real

Estate Player

Singapore &

Others, 45%

China, 37%

Others,

18%

Total Assets As At 30 Sept 2018

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Global Presence

With more than 12,000 employees across 31 countries and 174 cities, our global

network gives us extraordinary access to proprietary deal flow

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Singapore,

Malaysia,

Indonesia

45%

China

37%

Rest of the

World

12%

Vietnam

2%

Corporate &

Others

4%

Total Assets by

Geography

Residential &

Commercial

Strata, 15%

Retail, 41%Commercial,

26%

Lodging,

14%

Corporate

& Others,

4%

Total Asset by RE Asset

Class

As at 30 September 2018

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CapitaLand optimises Shareholders’

Equity through its 5 listed REITs and 16 private funds

As at 30 Sep 2018

(S$ billion)

On balance sheet & JVs 19.7

Funds 21.0

REITs 30.8

Others2 21.3

Total 92.8

Group managed real estate assets39.2

42.446.0

47.951.2 51.8

2013 2014 2015 2016 2017 Sep-18

YTD Sep 2018, CapitaLand recorded S$167.2

Million in REITs/Fund Management Fees

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Large Number of Projects Under Development Turned

Operational Since 2016

Strengthening the

Group’s

Operating PATMI

Raffles City Changning Raffles City Shenzhen

Raffles City

Hangzhou Suzhou Center Mall

CapitaMall Westgate Melawati Mall

LuOne

Tiangongyuan

Jewel Changi Airport Funan

• Proprietary deal flow

• Off-market opportunities

• Private treaties with governments

BUY

• Quality design

• Strong project management

• Efficient deal structure

• Proactive asset and property management

ADD

• Annual divestment

target of ~ S$3 billion

• Redeploy proceeds into higher yielding assets

• Divestment gains contributed to ~20% of FY 2017 ROE

SELL

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CapitaLand Business Model

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Guiding Principles For CapitaLand’s Group Strategy

FOCUS

• To develop deep expertise in an asset class

• Build best-in-class operating platform

• Grow strong networks in markets we operate in

SCALE

• Scale up in key focus markets

• Attract the best talents

• Forge strong partnerships

BALANCE

• Trading Properties versus Investment Properties

• Asset classes versus geographies

• Emerging Markets versus Developed Markets

AGILITY• To seek new growth opportunities in both mature and

new markets

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Looking ahead, CapitaLand will drive

growth in three key areas

Artist’s Impression Of Raffles City Chongqing, China

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Key Areas Of Growth

1Development

Business

• Solid track record as developer in Asia

• To continue building up our development business, increasing landbank especially on the residential front

• Landbank acquired in 2018 is expected to contribute to future profits for CapitaLand

2Funds

• Total global real estate AUM rose from $2.5 trillion at the end of 2016 to $2.8 trillion by the end of 20171

• End investors such as pension fund and SWFs are increasingly looking to allocate capital into real assets which includes real estate as stock markets becomes increasingly volatile

• CapitaLand’s solid track record of partnering with institutional investors puts us in a good position to attract institutional capital

3 Extending Our

Lodging Business

• Riding on trend

• Scale globally

• Brand value and adjacency

Note:1. Institutional Real Estate

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Positioning Our Business For the

Future

Harnessing technology and data

through the following ways to increase

competitiveness:

• Using a common backend system

• Having an open-ended platform

• Capturing data through loyalty

programmes e.g. CapitaStar & Lyf App

• Getting the organisation to be digitally

ready

• Setting up S$110 million venture fund in 2016

– S$35 million deployed to date

Conclusion

Raffles City Singapore

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Regardless of markets and volatility, we will continue to focus

on:

• Meeting our AUM target of $100 billion by Year 2020

• Increasing capital allocation to Trading Properties by up to 30%

• Proactive and disciplined recycling of assets of at least S$3 billion in gross value

annually

• Growing our fee business

• Identifying complementary businesses for growth

• Aligning shareholders’ interests with ours

Target To Consistently Deliver Returns Above The Cost Of Equity

Thank You